Volkswagen AG will decide soon on whether to build a new SUV for its Skoda and Seat brands at a plant in the Czech Republic or Spain, a Skoda union leader said. Reports from Czech media, including from newspaper Mlada Fronta Dnes, say that VW has picked its Skoda plant in Kvasiny, Czech Republic over Spain’s Seat as the site where the new SUV for both brands will be made.

The newspaper said production will begin at the end of 2015, with the Skoda SUV to be called Snowman. However, an official announcement is likely to be made on Friday, the report added. Currently, the Kvasiny plant builds the Skoda Roomster, Yeti and Superb models.

Still, a Skoda union official told Reuters no decision had been made, adding that Skoda officials will meet VW CEO Martin Winterkorn on Friday to discuss the issue. “It is being considered but it is still not definite. Everything will depend on the results of a Friday meeting with VW general director Martin Winterkorn,” said Jarolsav Povsik, the leader of Skoda’s union group and a supervisory board member at the carmaker. Skoda didn’t comment on the issue.

Let’s not forget that only two years ago Seat’s Martorell plant in Spain has received a new model, the Audi Q3, which may lead VW to favor Skoda now. VW is trying to boost the image and appeal of its Skoda and Seat brands, moving the former upmarket while refocusing the latter on Europe following a failed China export strategy. Skoda and Seat together made up 13 percent of VW’s 9.7 million sales last year.

By Dan Mihalascu

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